Canadian Auto Workers president Ken Lewenza announced a tentative deal between the union and General Motors at a news conference in Toronto on March 8. It was ratified March 11. (Frank Gunn/Canadian Press)

Chrysler and the Canadian Auto Workers will begin talks Monday aimed at reaching an agreement on worker concessions in advance of a looming deadline for the troubled automaker to receive billions in emergency loans.

Chrysler needs to submit a finalized restructuring plan to the federal and Ontario governments by March 31 to qualify for the money.

CAW president Ken Lewenza called the talks "a matter of urgency."

"We don't believe it's in the interest of our members or in the interest of consumers for this uncertainty of the industry to prolong itself much longer," he said during a Sunday interview.

The two sides appear to be heading into negotiations with widely varying ideas on what the agreement should entail.

Lewenza said the union will stick to pattern bargaining, meaning it will ask Chrysler to accept a deal similar to the one reached with General Motors earlier this month.

But Chrysler president Tom LaSorda has described that agreement as "unacceptable" to Chrysler and has raised the spectre of a complete pullout from Canada if the company doesn't get what it needs from workers and the government.

Lewenza doubts it will come to that and said he's confident Chrysler will come around to accept pattern bargaining.

"We're hopeful Chrysler will understand the importance of pattern bargaining, understand the importance of what it means to our members and take the pattern and the cost savings that come with it," Lewenza said.

He hopes an agreement can be reached by the end of the week.

Rival reached deal March 8

The GM deal, reached March 8 and ratified March 11, freezes wages until 2012 and suspends cost-of-living adjustments for both wages and pensions. It also reduces paid time off by 40 hours per year, scraps an annual $1,700 bonus and cuts company contributions to union-sponsored programs by one third.

Under the agreement, CAW members will also contribute $30 a month to their health benefits.

Chrysler has estimated the agreement with GM cuts that company's labour costs by approximately $7 an hour, and Chrysler has said it needs to reduce hourly labour costs by $19 to remain competitive.

Chrysler issued a one-line statement on Sunday.

"We look forward to a constructive dialogue with the CAW as we enter this important phase of our discussions," the statement read.

In Canada, Chrysler employs about 10,000 hourly workers at assembly plants in Windsor, Ont., and Brampton, Ont., and a casting plant in Toronto.

Ford Canada will also renegotiate its contract with the CAW, although the company has said it doesn't need financial assistance from the government.

Ford said it needs a new deal to bring customers back into showrooms.

The union and Ford have had some "exploratory" discussions, Lewenza said.